dividends paid
SYMANTEC CORP. $18.33 (Nasdaq symbol SYMC; TSINetwork Rating: Average) (1-408-517- 8000; www.symantec.com; Shares outstanding: 789.3 million; Market cap: $14.5 billion; No dividends paid) makes software that protects computers from viruses and intruders. It also sells a range of products and services to businesses, including software and services for data backup and protection, as well as data-archiving to meet increasingly strict regulatory and compliance regulations. In the three months ended December 31, 2010, Symantec’s revenue rose 3.6%, to $1.6 billion from $1.5 billion a year earlier. The company earned $0.35 a share, down 12.5% from $0.40 a year earlier. However, that beat the consensus estimate of $0.33. Publicity around the WikiLeaks affair, involving the public release of often-embarrassing diplomatic cables, has made the company’s customers more security conscious. This should help Symantec sell more data security software, despite the slow pace of the U.S. economic recovery....
ACI WORLDWIDE $28.80 (Nasdaq symbol ACIW; TSINetwork Rating: Speculative) (402-334-5101; www.tsainc.com; Shares outstanding: 33.2 million; Market cap: $956.2 million; No dividends paid) makes software that is used to process transactions that involve credit cards, debit cards, smart cards, automated-teller machines, point-of-sale terminals and interbank payments. ACI has more than 800 clients in 88 countries. Customers include more than 100 of the world’s 500 largest banks and seven of the top 12 retailers in the U.S. In the three months ended December 31, 2010, ACI’s revenue rose 12.2%, to $141.2 million from $125.9 million a year earlier. The company earned $27.1 million, or $0.82 a share, in the latest quarter. That’s up 38.5% from $19.6 million, or $0.58 a share. ACI’s cash flow jumped 83.6%, to $45.8 million, or $1.38 a share, from $24.9 million, or $0.73 a share....
FORTRESS PAPER $62.32 (Toronto symbol FTP; TSINetwork Rating: Extra Risk) (1-888-820-3888; www.fortresspaper.com; Shares outstanding: 12.2 million; Market cap: $760.0 million; No dividends paid) has completed its purchase of the assets of the Bank of Canada’s Optical Security Material division. This division makes the material used in the security threads of various paper currencies, including Canadian currency. The purchase includes almost all of the division’s production equipment. Fortress will also retain key employees. No purchase price was given, but it plans to raise $57.5 million in a share issue to pay for the acquisition and other costs....
DELPHI ENERGY $2.05 (Toronto symbol DEE; TSI Network Rating: Speculative) (403-265-6171; www.delphienergy.ca; Shares outstanding: 112.7 million; Market cap: $231.1 million; No dividends paid) explores for oil and natural gas in Alberta, Saskatchewan and B.C. Gas makes up 81% of Delphi’s daily output; the remaining 19% is oil. In the three months ended September 30, 2010, Delphi’s average daily output rose 19.8%, to a record 8,114 barrels of oil equivalent (this measurement includes natural gas) from 6,773 barrels. The higher production pushed up Delphi’s cash flow by 19.7%, to $15.1 million from $12.6 million. Cash flow per share fell 18.8%, $0.13 from $0.16 a year earlier, on more shares outstanding....
AEROPOSTALE INC. $26.40 (New York symbol ARO; TSINetwork Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 92.5 million; Market cap: $2.4 billion; No dividends paid), reports that its January sales rose 7% from a year earlier. Same-store sales rose 1%. That beat consensus estimates of a sales decrease. For the four-week period ended January 30, 2011, the company’s total sales (including new stores) were $120.4 million. Aeropostale also successfully sold most of its holiday merchandise, and is now beginning to sell its new spring clothing....
ALARMFORCE INDUSTRIES $9.25 (Toronto symbol AF: TSINetwork Rating: Speculative) (1-800- 267-2001; www.alarmforce.com; Shares outstanding: 12.2 million; Market cap: $113.2 million; No dividends paid) sells two-way voice alarm systems and monitoring services in Canada and the U.S. AlarmForce’s system differs from others because it lets emergency operators verify an alarm by establishing immediate, two-way voice contact with homeowners. It then dispatches security personnel to the client’s home. If intruders are present, the two-way contact can frighten them away. The company has used radio and TV advertising to gain a high profile. It gives its system away in order to add new subscribers. In return, they pay $25 a month for monitoring service, and sign on with a three-year contract. AlarmForce makes and owns each system....
DIAMONDS NORTH RESOURCES $0.17 (Toronto symbol DDN; TSINetwork Rating: Start-up) (1-866-802-2010; www.diamondsnorthresources.com; Shares outstanding: 86.9 million; Market cap: $14.8 million; No dividends paid) has identified 22 areas on its Amaruk property in Nunavut that could contain nickel. Its partner, Minerals and Metals Group, plans to spend $1.65 million to explore the property in 2011. Minerals and Metals is earning a 75% interest in nickel and other base metals on the Amaruk property by spending a total of $6 million and completing a prefeasibility study. It spent $2.35 million on the property in 2010. Diamonds North Resources is still a buy, but for highly aggressive investors only.
WESTJET AIRLINES $15.45 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 139.8 million; Market cap: $2.2 billion; Dividend yield: 1.3%) has just signed an “interline” agreement with Delta Air Lines. Under these agreements, two airlines cooperate on flights and baggage handling. WestJet has similar arrangements with Air France-KLM, China Airways of Taiwan, Hong Kong-based Dragonair and American Airlines. Interline deals can evolve into “code sharing” agreements. These are similar to interline pacts, but also let airlines sell seats and move luggage under their own names onto another carrier’s flights. Last year, WestJet entered into its first code-sharing deal with Cathay Pacific. WestJet, our Stock Pickers Digest “Stock of the Year for 2011,” is still a buy....
AMAZON.COM $186.62 (Nasdaq symbol AMZN; TSINetwork Rating: Extra Risk) (206- 266-1000; www.amazon.com; Shares outstanding: 448.8 million; Market cap: $83.8 billion; No dividends paid) has agreed to pay $320 million for the 58% of privately held Lovefilm International Ltd. that it didn’t already own. Amazon.com took a minority stake in U.K. based Lovefilm after it sold its DVD rental business in the U.K. and Germany to Lovefilm in 2008. Lovefilm rents movies, TV shows and video games by mail. As well, customers with Internet-enabled TV sets and game consoles can view Lovefilm’s content online. Taking full control of Lovefilm will let Amazon compete with rivals like popular Internet movie service Netflix (New York symbol NFLX)....
RESEARCH IN MOTION LTD. $63 (Toronto symbol RIM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 521.8 million; Market cap: $32.9 billion; Price-to-sales ratio: 1.8; No dividends paid; TSINetwork Rating: Above Average; www.rim.com) is best known for its BlackBerry smartphones and other wireless devices. There are now over 55 million BlackBerry users in 175 countries. RIM gets 80% of its revenue by selling hardware; services and software supply the remaining 20%.
RIM is riskier than most of our recommendations. That’s mainly because smartphone technology changes quickly, and the industry is intensely competitive. However, the company has several advantages that help offset these risks....